The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LSB Industries beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
LSB Industries recorded revenue of $215.4 million. The three analysts polled by S&P Capital IQ predicted revenue of $198.2 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $172.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.19. The three earnings estimates compiled by S&P Capital IQ forecast $0.86 per share on the same basis. GAAP EPS of $1.20 for Q4 were 46% higher than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.2%, 170 basis points better than the prior-year quarter. Operating margin was 23.2%, 280 basis points better than the prior-year quarter. Net margin was 13.0%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $200.4 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $839.6 million. The average EPS estimate is $3.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 563 members out of 580 rating the stock outperform, and 17 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give LSB Industries a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSB Industries is outperform, with an average price target of $47.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of LSB Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.